Technology Evolution has Dawned upon the Real Estate Space
Disrupting Community Management Industry through Emerging Technologies
How The Real Estate Industry Differs From Others When It Comes To...
The Intoxication of PropTech: Boom, Bust, and Survival
AI and the Future of Field Service: Moving from Efficiency to...
Michael Alcock, Director-CIO Executive Programs & Content, Microsoft [NASDAQ: MSFT]
Maximize Productivity with the Right Field Service Management Solution
Daniel M. Horton, CIO, Sallyport Global
Embracing Change for IT in the Construction Sector
Jason R. Kasch, CIO, Structural Group
6 Technology Adaptation Lessons in Construction
Jeff Cann, CIO & Chief Strategist, Encore Electric
Thank you for Subscribing to CIO Applications Weekly Brief
How Proptech Fills the Gap in Short-Term Rentals
The technological upheaval is helping stakeholders in the real estate industry re-imagine leasing and pricing processes.
FREMONT, CA: The way people rent and lease property is changing, and with this, the need for flexible leasing and renting is also growing significantly. The millennial population, with fast-paced lifestyles, is looking for short-term housing facilities. For real estate companies, these developments have brought about the need to redesign business models in a way that supports short-term renting and leasing facilities in a feasible manner. Proptech companies are playing a significant role in helping property owners and managers develop modern capabilities and replace traditional approaches with technology-enabled solutions. As the business opportunities grow and diversify, real estate companies can look forward to proptech firms as strategic partners who can provide the technological impetus that is required to stay profitable in the digitalizing world.
In the innovation-laden world of proptech, two categories of solutions are proving to be very impactful in driving short-term rental businesses forward. They are listed below.
Solutions to Monetize Real Estate Assets for Short-term Rental Demands
While the demand for short-term housing is growing among consumers, property owners are also looking for ways to optimize their income by monetizing assets for shorter periods. Although long-term renting out is still preferable, there exist void periods that can also be used to maximize earnings. With smart solutions, property owners and managers are now able to manage and regulate their property so that they can be offered in a legal way on a short-term basis.
There are some challenges that short-term leasing creates, which proptech companies are trying to solve with their technology-backed approach. From framing leasing agreements to ensuring the legalities, the digital solutions streamline many aspects. The solutions also offer features that simplify payments for temporary tenants while providing property owners the tools to effectively allocate residential spaces according to the needs of customers.
Thus, short-term leasing and renting processes are becoming effortless and giving real estate companies as well as individual property owners a chance to create better business opportunities and enhance the customer experience.
Solutions for Flexible and Automated Pricing of Short-term Rentals
Pricing often happens to be a recurring challenge for real estate players looking to offer short-term rental services. Owing to this, arriving on prices that are acceptable to both customers, as well as property owners, become complicated. Proptech companies have responded to this problem by creating automated and flexible pricing solutions. These digital solutions provide dynamic pricing features using which homeowners can easily lease out properties at transparently determined rates. The solutions are data-driven, which means relevant data and metrics are used to arrive at renting rates. With big data technology and machine learning algorithms, the solutions are able to intelligently manipulate and adjust rents periodically without the need for any manual interventions. Be it real estate firms or individual owners, these solutions empower every service provider to make use of optimum pricing tools to enhance business performance. Customers get to enjoy reasonably priced properties for short stays while property owners get the benefits of profits.
Price remains the most important aspect of competition in the real estate industry and assumes even more significance when it comes to short-term rentals. Accurately priced properties can enhance revenue up to 40 percent according to a market report, making these software solutions highly valuable for the real estate sector.
The trend of leasing out properties on a short-term basis is going to remain consistent in the coming years, and investing in proptech solutions that optimize business opportunities for the short-term rental segment can be a significant differentiator from the competition's point of view.